Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1887-09-15
THE b. & o. PASSES INTO OTHER
HANDS.
A Syndicate of Bankers Gets the
Great Trunk Line.

NEW YORK, Sept. 3.-All the rumors
of deals that have been floating around,
relative to the sale of the B. & o. rail-
road were confirmed late on Friday
The road has at last passed out of its
old owners hands and the CARROTS will
control it no more. An enormous
floating debt, to heavy for the road to
carry, weighted it down. The heavy
expenses of the telegraph line, neces-
sary by its competition with the West
ern Union, and the cost of the new
road from Philadelphia to New York
were the burden that sunk the manage
ment. After the Ives deal was broken
off, Garrett went to London and enter
ed into negotiations with the bankers
there. Strong denials were made all
along of any desire to sell the road, but
Garrett's anxiety to get rid of it before
he should be carried down in financial
crash was too plain. The deal with the
bankers was consummated some time
ago, but only awaited the legal decis-
ion of Edward Lauterbach, of New
York, whether the telegraph line was
mortgaged in previous loans. After
studying the case, Lauterbach, who
has been the principal go-between, de-
cided that the wires were free from all
liens, and then the great deal was i'm
mediately closed. The syndicate made
loan of $40, 10000 to the B. & o. road,
and the mortgage given practically
places control in its hands. The condi-
tions of the loan are that the manage
ment shall be given into hands salts
factory to the syndicate and that salts
/ factory contracts shall be made with
other roads for the New York business
that shall remove all antagonism be-
tween them on the subject and will in
sure the permanent working of the B,
& o. in entire harmony with the other
trunk lines; also avoid construction or
threat of construction of parallel lines
north and east of Philadelphia. In
consideration, the syndicate relieves
the road of its present embarrassing
floating debt by advancing $4,000, 600
This will be represented halfin B. & 0
consolidated fives and half in preferred
stock. The floating debt as it stands
amounts to 81, ,0O0, 900 of which, $4, 900,
600 matured Sept. 1. The syndicate
that has made this enormous loan and
taken up one of the leading trunk line!
of America is composed of: J. s. Nor
gan & Co., Barring Bros. & Co., and
Brown, Shipley & Co., of London
Drexel, Morgan 4 Co., Kidder, Peabody
& Co., and Brown Bros. & Co., of New
York, and Drexer & Co., of Philadel
phia.
The new owners will adopt con
servative line of policy. All the out
The Western Union will control, If i
does not buy, the telegraph lines, anG
the Pullman Car Co. will take tn,
sleeping car business. The express
business has already gone to the U. 8
Express Co. The affairs of the roaC
will be entirely reorganized and PLACED
on q sound financial basis. 1t is al
guess work as to who will be Garrett
successor, but many believe that A. ]
Cassett, Vice-President of the Pennsyl
vania lines, will be the man. The re
organized plan of management will
stop the work on the line from Phila
delphia to New York, under construc
ton to rival the Pennsylvania's en-
trance into the metropolis. The worl
on Staten Island will also cease.
Back of the syndicate many preten'
to see hand that has pulled the wire
to bring about the downfall of tn
great B. & o. That hand is the power
full Pennsylvania management, tn
, rival of the CARROTS, which has labore'
! to defeat every move Of its southern
: : rival. That it has at last succeeded il
! gaining control of the B. G o. is almos
6 generally conceded. The clause in tn
+ contract stopping work on the Ne'
York branch is constructed to meal
! that when stripped of all its extraneou
enterprises the B. & o. will be practiC
ably operated by the Pennsylvania.
a The surprise in Baltimore was CON
! plete, everyone believing in the numel
Gus denials of deals. Officials of tn
!. road, however, confirmed the sale, an
, rumors were also current that John "
4 Mackey had been given an option O
: the B. & o. telegraph line to prevent
: going into Gould's hands.